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Kevin Hursh on Agriculture: Hursh Comment

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American canola acreage booms

Posted in Uncategorized by Kevin Hursh
Nov 29 2010

Producers in the United States grew a record amount of canola this year. A report from Agriculture and Agri-Food Canada lists American canola area at nearly 3.8 million acres. That’s an amazing 84 per cent increase from the previous year. About 87 per cent of the canola area was centered in North Dakota, with Oklahoma becoming the number two producing state. While the U.S. had 3.8 million acres, over 16 million acres were seeded in Canada, with over seven million acres in Saskatchewan. So the American acreage is significant, but not in the same order of magnitude as north of the border. Ag Canada says the American shift to canola is attributed to improved returns for the crop as compared to lower wheat prices for the past two years. As well, fusarium has been difficult to control in wheat crops in the Red River Valley. A big chunk of that American canola crop is expected to find its way north to service the recently constructed crush facilities located in eastern Saskatchewan where excess moisture decreased local canola production. Ironically, the U.S. is Canada’s largest customer for canola oil and the world’s largest importer of canola oil. I’m Kevin Hursh.

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